May 30, 2015

Many Tax-Exempt Organizations Must File with IRS by May 15; Do Not Include Social Security Numbers or Personal Data

WASHINGTON — The Internal Revenue Service today reminds tax-exempt organizations that many have a filing deadline for Form 990-series information returns in mid-May.

With the May 15 filing deadline facing many tax-exempt organizations, the IRS today cautioned these groups not to include Social Security numbers or other unneeded personal information on their Form 990, and consider taking advantage of the speed and convenience of electronic filing.

Form 990-series information returns and notices are due on the 15th day of the fifth month after an organization’s tax year ends. Many organizations use the calendar year as their tax year, making Friday, May 15, the deadline for them to file for 2014.

Many Groups Risk Loss of Tax-Exempt Status

By law, organizations that fail to file annual reports for three consecutive years will see their federal tax exemptions automatically revoked as of the due date of the third required filing. The Pension Protection Act of 2006 mandates that most tax-exempt organizations file annual Form 990-series informational returns or notices with the IRS. The law, which went into effect at the beginning of 2007, also imposed a new annual filing requirement on small organizations. Churches and church-related organizations are not required to file annual reports.

No Social Security Numbers on 990s

The IRS generally does not ask organizations for SSNs and in the form instructions cautions filers not to provide them on the form. By law, both the IRS and most tax-exempt organizations are required to publicly disclose most parts of form filings, including schedules and attachments. Public release of SSNs and other personally identifiable information about donors, clients or benefactors could give rise to identity theft.

The IRS also urges tax-exempt organizations to file forms electronically in order to reduce the risk of inadvertently including SSNs or other unneeded personal information. Details are on IRS.gov.

Tax-exempt forms that must be made public by the IRS are clearly marked “Open to Public Inspection” in the top right corner of the first page. These include Form 990, 990-EZ, Form 990-PF and others.

What to File

Small tax-exempt organizations with average annual receipts of $50,000 or less may file an electronic notice called a Form 990-N (e-Postcard), which asks organizations for a few basic pieces of information. Tax-exempt organizations with average annual receipts above $50,000 must file a Form 990 or 990-EZ depending on their receipts and assets. Private foundations file a Form 990-PF.

Organizations that need additional time to file a Form 990, 990-EZ or 990-PF may obtain an extension. Note that no extension is available for filing the Form 990-N (e-Postcard).

Check Tax-Exempt Status Online

The IRS publishes the names of organizations identified as having automatically lost their tax-exempt status for failing to file annual reports for three consecutive years. Organizations that have had their exemptions automatically revoked and wish to have that status reinstated must file an application for exemption and pay the appropriate user fee.

The IRS offers an online search tool, Exempt Organizations Select Check, to help users more easily find key information about the federal tax status and filings of certain tax-exempt organizations, including whether organizations have had their federal tax exemptions automatically revoked.

More Tax News

Due to a growing client base in Connersville, Indiana, we’re opening an office there. The Connersville office will be open Mondays, Wednesdays and Fridays for now with expanded hours during tax season. The 2nd location is located at 801 W 35th Street, next to the fire station. Our main office will remain in Richmond. Appointments, […]

IR-2016-117, Aug. 31, 2016 WASHINGTON — The Internal Revenue Service today encouraged taxpayers to consider a mid-year tax withholding checkup following several new factors that could affect their refunds in 2017. Taking a closer look at the taxes being withheld can help ensure the right amount is withheld, either for tax refund purposes or […]

FS-2015-1, January 2015 Stopping identity theft and refund fraud is a top priority for the Internal Revenue Service. For the 2015 filing season, the IRS continues to expand these efforts to better protect taxpayers and help victims. IRS employees are working to prevent refund fraud, investigate identity theft-related crimes and help taxpayers who have been […]

Announcing our new Administrative Assistant, Julie Favorite! We welcome her to the Williams & Keckler team. Julie’s background includes many years employment at a local attorneys’ office and more than a decade in the loan department of a local bank. Drop by and say “hello”, or email her at Julie@keckler.com.

Issue Number: IRS Summertime Tax Tip 2015-23 Internal Revenue Service (IRS) sent this bulletin at 08/24/2015 09:00 AM EDT Key Tax Tips on the Tax Effects of Divorce or Separation Income tax may be the last thing on your mind after a divorce or separation. However, these events can have a big impact on your taxes. […]

Issue Number: HCTT-2015-46 Aug. 4, 2015 What Employers Need to Know about the Affordable Care Act The health care law contains tax provisions that affect employers. The size and structure of a workforce – small or large – helps determine which parts of the law apply to which employers. Calculating the number of employees is especially […]

Each year, the Taxpayer Advocate Service and its leader Nina E. Olson release an open letter to the IRS containing recommendations for improvement. FOXBusiness.com highlights five common sense changes the IRS can make to work better for you. Create one point of contact for identity theft Under the current structure, victims of identity theft are […]

WASHINGTON —The Internal Revenue Service today encouraged eligible small businesses that did not file certain retirement plan returns to take advantage of a low-cost penalty relief program enabling them to quickly come back into compliance. The program is designed to help small businesses that may have been unaware of the reporting requirements that apply to […]

IRS Summertime Tax Tip Each year the IRS mails millions of notices and letters to taxpayers. If you receive a notice from the IRS, here is what you should do: • Don’t Ignore It. You can respond to most IRS notices quickly and easily. It is important that you reply right away. • Focus […]